Pricing your property correctly is essential when you want to rent it out quickly to qualified tenants. A property that’s overpriced will be vacant for a longer period of time, which costs you rental income that you’ll never recover. A property that’s vacant for 30 or 60 days can cost you thousands of dollars. New landlords aren’t always sure how much to charge. If you’re struggling to effectively price your property, talk to a professional property manager who understands the local market. The market drives the rental rates, and you have to know what good tenants in your area are willing to pay.
Conduct a Comparative Market Analysis
A comparative market analysis will indicate what your property is worth on the rental market, compared to others that are also for rent or have recently been rented. A good analysis compares the size, condition, and location of your property to the size, condition, and location of competing properties. Additional factors that impact your rental price include amenities, the strength of the San Antonio rental market, and even the time of year that it’s listed.
Rental Price and Tenant Quality
You never want to underprice your rental property; leaving money on the table can hurt your bottom line. But, it’s often worse to price your home higher than what the rental analysis reflects. An overpriced property can lose you an average of $350 per week in vacancy time. You also risk attracting unqualified tenants. Potential renters who have been denied everywhere else will be willing to pay a price that’s higher than what the market demands. They know they have fewer options, especially if they have bad credit, past evictions, or violent criminal histories. You don’t want to rent to unqualified tenants simply to get a higher price. It will end up costing you more in potential evictions and property damage.
Proper Pricing Leads to Higher ROI
Get some professional help to accurately price your rental property. Otherwise, you’re missing the opportunity to maximize your rental income and increase what you earn over the long term. At Liberty, we do a full rental analysis before we put your property on the market. When your lease is due to renew, we do another analysis so we know how much of a rental increase to propose. With the right price, you can earn the most from your current and future tenants. Please contact us at Liberty Management if you have any questions about San Antonio property management or if you need any help pricing your rental property.